The impending halving of leading cryptocurrency Bitcoin has been the subject of debate in recent months. There have been different views about the effects it could have on the Bitcoin landscape.
Mati Greenspan the founder of Quantum Economics and a former analyst at eToro has waded in on this following a question put to him on Twitter. A follower named Juneasjun1 asked Greenspan whether Bitcoin will pump after halving following the failure of BCH to pump.
Greenspan then replied that looking at the two coins from a tokenomics perspective he believes that the halving of Bitcoin will be different from that of Bitcoin Cash.
He further elaborated that BTC was an embodiment of digital scarcity while BCH represented free money created on the back of Bitcoin.
Greenspan is right about Bitcoin being an embodiment of digital scarcity
Bitcoin was created by Satoshi Nakamoto following the last global economic recession in 2008 and is seen as many as a safe hedge against mainstream economic policies. In addition, the total number of Bitcoins is finite which has largely contributed to its rise as the leading coin.
The next halving which is expected to occur sometime in May will lead to more scarcity of the coin since the mining rewards will be halved. This will invariably create a situation that could see BTC pump to record levels.
However, some analysts have pointed out that the recent halvings of BCH and Litecoin have not corresponded to a subsequent increase in their values.
As we saw recently with the Litecoin (LTC), a halving not guaranteed does not drive the price of the asset. LTC exceeded $100 just after its halving, but months later its price has plunged with its current value around $40.
Bitcoin has always proven to be an exception in the crypto market with the coin historically peaking after its halving.
Despite this, the influence of halving on the price of BTC remains a major subject of speculation within the crypto community.